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Child Benefit

Child Benefit

What is Child Benefit and how does it work?

You receive child benefit if you’re responsible for bringing up a child who is:

  • Under 16
  • Under 20 and in approved education or training

Child Benefit is paid every 4 weeks and there is no limit on the number of children that can be claimed for. Only one person can claim child benefit for a child.

If you choose not to receive child benefit payment you should still fill in the claim form as this will enable your child to automatically be issued a National Insurance number once they reach 16 years of age and also you can get National Insurance credits which count towards your state pension.

Both you and your partner earn less than £50,000 per year

If you and your partner each earn less than £50,000, you will receive the full amount of child benefit without having to pay it back.

Either you or your partner earns between £50,000 and £60,000 per year

If either you or your partner earn between £50,000 and £60,000 per year before tax then you will have to pay a potion back in extra income tax. This is referred to as the High- income tax charge.

You will still receive the full amount of child benefit, and then the higher earner will need to complete a self-assessment to calculate the amount of extra income tax to be paid.

How much to pay back

The amount that has to be paid back is worked out as for every £100 over the £50,000 threshold then 1% of the child benefit has to be paid back.

Either you or your partner earns over £60,000

If either you or your partner earn over £60,000 a year before tax then all of the child benefit will need to be paid back.

You will still receive the full amount of child benefit, and then the higher earner will need to complete a self-assessment to calculate the amount of extra income tax to be paid.

For further advice on this contact AJR & Co Ltd to arrange a free 30 minute consultation.

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From AJR & Co Ltd